Deutsche Bank and KBC Group have frozen some Singapore bank accounts belonging to Radiant World, the iron ore trading house, while other lenders have suspended credit lines, according to people familiar with the matter. The moves follow Bloomberg's report last week that commodity traders had stopped dealing with Radiant World over concerns it provided banks with falsified documents about iron ore trades.

Rio Tinto Group and Vale, the world's two largest iron ore miners, have removed Radiant World from their approved customer lists for spot market sales. Arab Bank Switzerland has stopped issuing new letters of credit for the trading house's shipments, and ICBC Standard Bank has suspended repo financing, according to sources.

Radiant World said in a statement it "remains well capitalised with healthy liquidity, supported by a consortium of long-standing banking partners" and continues to meet its obligations. The company has previously denied wrongdoing, saying it "conducts its business to the highest commercial and legal standards." The Straits Times reports.